Abnormal freight costs are not included on the statement of financial position as part of the cost of inventory.

Name: Abnormal freight costs are not included on the statement of financial position as part of the cost of inventory.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Abnormal freight costs are considered as period costs rather than part of the cost of inventory and therefore are expensed in the period incurred rather than being included in the cost of inventory on the statement of financial position.

Abnormal Freight Costs Are Not Included on the Statement of Financial